Question 3:

A Calculate the internal growth rate given the following information: equity $300,000; total assets $400,000; net income $90,000; dividends paid $45,000.

B Harmohit collects old model cars. One model increases in value at a rate of 9.5% per year. Today, the model is worth $1,790. How much additional money can Harmohit make if she waits 5 years to sell the model rather than selling it 2 years from now?